To profit from employing a tax accountant, you don’t necessarily need to be affluent or own a business. You could be having trouble submitting back taxes, paying off a tax bill, or defending against an IRS audit, or you might find that doing your taxes is too stressful or complex as suggested by MY tax TEAM.
How to Find a Tax Accountant
While some accountants are generalists, others are experts in particular fields. When trying to locate someone who fits your needs, asking for tax accounting services might be wise. Consult company owners, financial planners, and lawyers, but don’t forget to ask your relatives and friends. Since almost everyone files taxes, a tone of names should be available.
Describe your needs for an accountant and the things you want them to perform for you. If there is anything uncommon about your position, don’t be afraid to call the company or the accountant to see if they know how to manage your taxes.
Assess the Credibility of the Accountant
Be skeptical of any accountant who offers you a sizable return up front without first examining your specific financial position. The same is true if someone claims you can write off too many costs before speaking with you.
Unless a person has a Preparer Tax Identification Number (PTIN) issued by the IRS, they are not permitted to receive payment for preparing their taxes. If there isn’t one, something could be wrong.
Optional Tax Preparers
If you merely need to submit a reasonably simple tax return, retail tax franchises like H&R Block, Jackson Hewitt, and Liberty Tax Service provide excellent assistance. Even enrolled agents (EAs) and certified public accountants (CPAs) occasionally work in these offices.
The cost will often be the same, but you will work with a more experienced specialist.
Tax Professionals’ Types
- Registered Agents
At least in IRS certifications, enrolled agents (EAs) are the elite. They have passed the IRS’s demanding examinations and background checks.
Some have worked with the IRS, some EAs are recognized without testing; nonetheless, all must fulfill continuing education requirements every three years.
EAs are ideal for dealing with complex tax circumstances since they frequently specialize in particular tax fields. If you are subject to an audit or collection proceedings by the IRS, they can represent you before the agency.
- CPAs, Certified Public
Certified public accountants (CPAs) are licensed by the state’s board of accountancy and have completed the challenging Uniform CPA Examination. They have college or university-level accounting degrees, and maintaining their licenses requires them to satisfy specific character and experience standards.
CPAs frequently focus on areas of accounting-specific expertise. Not all CPAs deal with tax matters, although some specialize in tax accounting. A CPA may also do that if you need representation before the IRS due to an audit or collection.
- Tax Lawyers
State courts and bar associations license tax attorneys and lawyers focused on tax law. In addition to the mandatory Juries doctor degrees, they frequently hold a master of law degrees in taxes.
Preparing estate tax returns and representation in front of the U.S. Tax Court are complex legal problems that are best left to attorneys. They must also meet standards for ongoing education. 1
Yes, you must conduct an Interview.
This is because you shouldn’t divulge sensitive information to someone you haven’t met. As you would with anybody you were considering hiring, ask for references. Then, get in touch with those references to get confirmation. Simple inquiries like “Are you satisfied with their services?”
The Questions
Finding someone with expertise and reliability may be ensured by asking the appropriate questions.
- In what areas of tax law do you specialize?
- Do you hire outside contractors for any of your work, or do you or your personnel complete every task in-house?
- How much do you charge? They may be negotiated. Can you please put that in writing?
- How do you handle privacy?
By law, accountants must give all clients written disclosures about their privacy practices. If you aren’t given a copy, request one.
A Few Final Safety Measures
After your initial interview, conduct a brief background investigation. You may look for an expert’s profile on social networking sites as well. See what reviews there are for the company and its webpage.
Contact your agency’s council of accountants like MY tax TEAM to check the progress of a CPA’s license or whether any disciplinary proceedings have yet been conducted against the bookkeeper. If you want to find out if an EA has ever received a censure or been subject to any disciplinary action, contact the IRS Office of Professional Responsibility. Additionally, you might wish to contact your community’s chamber of commerce. And keep in mind that you, not the auditors, are ultimately responsible for the veracity of the claims on your tax filing.
